Ramsay Health Care Limited · ASX:RHC
Ramsay Health Care — H1 FY2013 Earnings Presentation
25 slides from Ramsay Health Care's earnings presentation, Feb 26, 2013
Slide 1: Financial Results Briefing, Half-year ended 31 December 2012
For personal use only Financial Results Briefing Half-year ended 31 December 2012 26 February 2013 Christopher Rex, Managing Director
Slide 2: Agenda
AGENDA For personal use only 1. Operational and Financial Highlights 2. Segment Operational and Financial Highlights 3. Brownfield Development Update 4. Growth Strategy and Outlook 2
Slide 3: Operational and Financial Highlights
| and Financial Operationa Iights i igh rl
Slide 4: Half-Year Financial Highlights
HALF-YEAR FINANCIAL HIGHLIGHTS For personal use only • Core NPAT up 12.3% to $148.2 million • Core EPS up 13.7% to 69.1cents • Group revenue up 5.2% to $2.1 billion • Group EBIT up 8.8% to $248.4 million • Australia and Indonesia: − Revenue up 6.7% to $1.7 billion − EBIT up 10.3% to $222.0 million •
Slide 5: Operational Highlights
OPERATIONAL HIGHLIGHTS For personal use only • Results reflect solid performance across worldwide portfolio • Completed brownfield developments meeting growing demand and adding to EBIT and EPS • A further $91 million in brownfield capacity expansion approved during the six month period • In Austral
Slide 6: Group Financial Performance
GROUP FINANCIAL PERFORMANCE For personal use only HALF-YEAR ENDED 31 DECEMBER 2012 2011 Increase $m $m % Revenue 2,071.7 1,970.2 5.2% EBITDA 318.8 299.7 6.4% EBIT 248.4 228.3 8.8% Core NPAT (1) 148.2 132.0 12.3% Core EPS (2) (cents per share) 69.1¢ 60.8¢ 13.7% Interim Dividend – Fully Franked (cents
Slide 7: Reconciliation to Reported Profit
RECONCILIATION TO REPORTED PROFIT For personal use only HALF-YEAR ENDED 31 DECEMBER 2012 2011 Increase $m $m Core NPAT 148.2 132.0 12.3% Non-core items (net of tax)(1) (9.8) (6.3) Reported Net Profit after tax 138.4 125.7 10.1% (1) Non-core items (net of tax) 2012 2011 $m $m Deferred annual non-cash
Slide 8: Group Core NPAT & Core EPS
GROUP CORE NPAT & CORE EPS For personal use only June Half December Half $148.2m $132.0m $120.7m $115.8m $104.8m $87.4m 69.1¢ 60.8¢ 55.3¢ 53.9¢ 47.2¢ 40.0¢ Jun'10 Jun'11 Jun'12 Dec'10 Dec'11 Dec'12 Core EPS (cents/share) Core NPAT ($m) • Core NPAT up 12.3% to $148.2 million • Core EPS up 13.7% to 69
Slide 9: Dividend Growth
DIVIDEND GROWTH For personal use only Full-year Dividends Interim Dividend FY 2013 60.0¢ 52.0¢ 34.5 43.5¢ 29.5 25.0 29.0¢ 29.0 25.5 22.5 18.5 FY'10 FY'11 FY'12 Dec'12 Interim Dividend (cents/share) Final Dividend (cents/share) • Interim dividend fully franked, up 13.7% on previous corresponding peri
Slide 10: Leverage & Cash Management
LEVERAGE & CASH MANAGEMENT For personal use only Leverage* Cash Flow 6x Affinity Acquisition $1.4B $m 5.1 5x 350 Capio UK Acquisition £193M 300 4x 3.7 Ramsay Santé 250 3.3 Acquisition €87M 3x 200 2.7 2.7 2.4 1.9 150 2x Dec'11 Dec'12 1.5 1.5 Gross Operating Cash Flow 1x EBITDA FY05 FY06 FY07 FY08 FY0
Slide 11: Segment Operational and Financial Highlights
Segment Operational and Financial highlights
Slide 12: Geographical Segments
GEOGRAPHICAL SEGMENTS For personal use only Operating Revenue EBITDAR 5% 4% 13% 18% 2% 2% 80% 76% Australia Australia Indonesia Indonesia United Kindom United Kingdom France France 12
Slide 13: Operational/Financial Highlights – Australia
OPERATIONAL/FINANCIAL HIGHLIGHTS – AUSTRALIA For personal use only • Revenue up 7% to $1.66 billion • EBIT up 10% to $219 million • Australian hospital EBITDA margin up 50 bpts to 18.6% • Private health insurance (PHI) membership remains strong despite challenges presented by changes to PHI policy r
Slide 14: Operational/Financial Highlights – Indonesia
OPERATIONAL/FINANCIAL HIGHLIGHTS – INDONESIA For personal use only • Strong operating result for the half year • Revenue up 11% to IDR 316 billion • EBIT up 46% to IDR 33 billion • EBITDA margin up 180 bpts to 16.3% • Continued opportunity to grow • Emerging market with burgeoning middle class and a
Slide 15: Operational/Financial Highlights – Europe
OPERATIONAL/FINANCIAL HIGHLIGHTS – EUROPE For personal use only Ramsay UK • Revenue up 1.5% to £179 million • EBITDAR up 1.5% to £45 million • EBITDAR margin remains strong at 25% • Private Medical Insured admissions remain subdued but continued growth from NHS admissions with 9% growth over the pre
Slide 16: Sunshine Coast University Private Hospital
For personal use only Sunshine Coast University Private Hospital 16
Slide 17: Brownfield Development Update
BROWNFIELD DEVELOPMENT UPDATE For personal use only • $91m approved for brownfield capacity expansions at existing hospitals during the period: – $56m expansion of Warringal Private – $14m expansion of theatre and day surgery at The Avenue Private – $10m expansion of operating theatres at Strathfiel
Slide 18: Brownfield Development Update: Warringal Private Hospital
BROWNFIELD DEVELOPMENT UPDATE For personal use only Warringal Private Hospital, Melbourne: – $56 million • Re-development and major expansion • 62 new private beds • 5 additional operating theatres • Day surgery, recovery units – When completed, Warringal Private Hospital will have 205 private beds
Slide 19: Completed Projects During 1st Half
COMPLETED PROJECTS DURING 1ST HALF For personal use only • $19.2m expansion of Peninsula and Beleura Private Hospitals (VIC) - completed October 2012 • $7.2m new 28 bed medical wing at North Shore Private (NSW) – completed December 2012 • $5.9m expansion of operating theatres at Cairns Private Hospi
Slide 20: Major Projects
MAJOR PROJECTS For personal use only • New 145-bed private hospital at Joondalup Health Campus – opens March 2013, completing the major development on this site • $47 million expansion of Greenslopes Private with additional 60 beds, 4 operating theatres and obstetric services – opens March 2013 • 20
Slide 21: Growth Strategy and Outlook
Growth Strategy and Outlook
Slide 22: Strong Growth Strategy
STRONG GROWTH STRATEGY For personal use only Brownfield Public/Private Organic Capacity Acquisitions Collaborations Expansion Underpinned by Unmet demand Potential for more Exploring further demographics, driving Ramsay’s partnerships to acquisitions in quality portfolio of develop/manage/pr existin
Slide 23: Core NPAT Growth
CORE NPAT GROWTH - Compound Annual Growth Rate (CAGR) For personal use only A$m 280 CAGR of 23% 240 200 160 120 80 40 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Core NPAT CAGR Core NPAT 23
Slide 24: Outlook
OUTLOOK For personal use only • Positive market dynamics indicate strong upside for Ramsay • Growing and ageing population will continue to drive our investment in capacity expansion • Remain positive about opportunities overseas including emerging markets and the opportunity to apply our proven hea
Slide 25: Ramsay Health Care
RAMSAY HEALTH CARE US SONS